United Bank for Africa (UBA) is having a good earnings day. Yes, take it because it is real.

The third largest bank in Nigeria, by total assets, deposits and profits, reported solid results, and reaffirmed its earnings forecast as it continues to utilise the resources of shareholders in generating higher profit.

For the first three months of the year, UBA’s net income spiked by 46.40 percent to N34.91 billion from N23.88 billion as at March 2017.

The growth at the bottom line (profit) was largely driven by other comprehensive incomes (OCI) of N11.23 billion in the period under review.

OCIs comprise of exchange differences on translation of foreign operations and net fair value gains during the period.

Gross earnings rose by 18.12 percent to N119.36 billion in the period under review as the pan African lender continues toleverage on enhanced customer engagement, improving service quality, speed to market and innovative offerings.

Interest income, which contributed 75 percent of gross earnings, grew 17.67 percent to N90.33 billion, driven by interest income on short term government securities when yields where between April and August last year.

UBA recorded 14.50 percent growth in non-interest income to N24.01 billion as at March 2018, contributing some 20 of gross earnings, buoyed by strong growth in transaction volumes as well as increased FCY related revenues.

The Nigerian lender has turned each Naira in invested in revenue into higher profit as net margin increased to 28.57 percent in the period under review from 22.27 percent the previous year.

UBA says it expects improvement in customer service and innovative offerings to accelerate market share gain as technology enhancement and investment in people are expected to drive productivity and efficiency gains.

UBA loan book shrank as lenders in Africa’s largest economy turn off the tap on lending.

Loans and advances to bank and customers dipped by 1.70 percent to N2.81 trillion in March 2018, from N2.86 trillion the previous year.

Zenith Bank’s loans and advances to customers dipped 25.53 percent to N1.75 trillion in March 2018 from N2.35 trillion the previous year.

Similarly, GTBank’s loans and advances to customers fell by 6.25 percent to N1.35 trillion in March 2018 2017 from N1.44 trillio as at March 2017.

Analysts say a drop in those yields from record highs in August means that 2018 will be more challenging for lenders, despite the positive macro backdrop.